Federal deregulation doesn’t mean compliance professionals can relax. CCI contributing writer Carrie Pallardy investigates the implications of a weakened Consumer Financial Protection Bureau and why finserv compliance experts recommend maintaining robust programs despite federal pullbacks, from the threat of state enforcement to reputation risk.
In just the past couple of months, the Consumer Financial Protection Bureau (CFPB) has dropped a lawsuit over the payment app Zelle, a case against Capital One accusing the bank of cheating customers out of interest payments and a half-dozen other actions against student loan servicers, credit card companies, mortgage lenders and other financial institutions. Meanwhile, a judge’s injunction in mid-April halted the planned layoffs of 90% of the agency’s workforce, a cost-cutting effort spearheaded by Elon Musk and his DOGE operatives; that case remains ongoing.
With the day-to-day operations of the CFPB in a state of flux, predicting what could happen next may be a fool’s errand, said Jonathan Kolodziej, a partner at Bradley Arant Boult Cummings and co-leader of the law firm’s CFPB practice.
“It’s all very fast and hectic right now, and I think … we just have to let the dust settle. I don’t think anyone truly knows what [exact plans] the Trump…
